Weathering Life’s Storms

Life does not always go the way we want. 

Becoming unemployed can happen to almost anyone. Accidents and illness can strike, leaving us unable to work, possibly permanently.

Bills need to be paid and your family needs food on the table, even if money isn’t coming in. If you can’t work, your home and the people who depend on you could be at risk.  And what would happen to those you love if you could no longer be there for them?

You need an umbrella.

What is an umbrella?

Insurance exists to help when things go wrong. Most of us have at least some forms of life insurance, perhaps to pay off the mortgage and keep roof over our family’s head if the worst was to happen to us. But it is not enough to deal with all the things life might throw at us. It can’t pay out if we become incapacitated, or if we simply lose our income.

Umbrella cover, on the other hand, may. An umbrella, made up of a whole range of insurance cover types, may offer protection against all kinds of threats, and give all-round financial security for you and your loved ones, no matter what life had in store.

At Continuum, we can look to build you an umbrella for your protection needs – including your need to keep costs in check.

It is possible to have too much cover, making your premiums harder to manage, but for most people the risk is not having sufficient cover in place. Getting all round cover that you can afford is vital – at Continuum we can help you find it.

How does umbrella cover work?

Everyone has different circumstance, resources and commitments. This means that everyone needs an individually designed umbrella.

A Continuum advisor can sit down with you to see the types and levels of cover that you need. They’ll look at your financial situation, and at the best ways to secure it.

This will mean looking at several types of protection.

Life assurance 

Life insurance cover is obviously vital, especially if you have a spouse or other dependents. It must be at the core of your umbrella. It could provide a cash lump sum, which could help replace your income for those who depend on you now.

Getting the appropriate level of cover is crucial.

Critical illness cover 

While most people understand the importance of life insurance, many leave themselves vulnerable if illness or injury left them unable to work.

So, the next element in your umbrella should be Critical Illness Cover (CIC). This pays out a tax-free lump sum if you are diagnosed with illnesses listed in the policy, which usually include most forms of cancer, heart attack and stroke. Like life insurance, it can be arranged at a level to pay off your mortgage and to provide a replacement income.

Income protection insurance

You may also need Income protection insurance as part of your umbrella.  There are two main types. 

The first is Permanent Health Insurance or PHI. This pays a proportion of your salary in the event of illness or a debilitating accident that stops you working permanently and can continue until your normal retirement age.

The other is Accident, Sickness and Unemployment (ASU) cover. This can provide a replacement income in the event of illness, accident, or redundancy for a maximum of 12 or 24 months. 

Long term policies can continue paying monthly benefits for a single claim until you retire. However, long term policies won’t usually include cover for unemployment.

An umbrella might cost less than you think

One of the great advantages of having umbrella cover is that it can, in most cases, cost much less than buying the individual policies that make it up.

With a co-ordinated insurance umbrella, with all the cover you need in a single policy you have just one monthly premium to pay. What’s more that single premium may well be very much smaller than a piecemeal approach.

Of course, an independent expert is vital if you are to have the umbrella you need. 

The Continuum team can help you see the level of cover you need, and the most appropriate way to provide it, selecting from the hundreds of insurance providers available.

To find out how you can save with an umbrella and enjoy the complete peace of mind of all round protection for your family for less, simply call us today.

The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable Protection products, you should seek independent financial advice before embarking on any course of action.

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